From: Colin Liew <colinliew@gmail.com>
To: ODG <obligations@uwo.ca>
Date: 30/03/2010 15:12:43 UTC
Subject: Beneficial owners can sue for negligently-caused economic loss toproperty

Dear all,

The English Court of Appeal in Shell UK Ltd & Ors v Total UK Ltd & Ors [2010] EWCA Civ 180 has decided (at [142]) that a duty of care is owed to a beneficial owner of property by a defendant who can reasonably foresee that his negligent actions will damage that property. If, therefore, such property is, in breach of duty, damaged by the defendant, that defendant will be liable not merely for the physical loss of that property but also for the foreseeable consequences of that loss, such as the extra expenditure to which the beneficial owner is put or the loss of profit which he incurs. Provided that the beneficial owner can join the legal owner in the proceedings, it does not matter that the beneficial owner is not himself in possession of the property.

The appeal arose out of the 2005 Buncefield fire where, due to the negligence of Total (as found by David Steel J in March 2009), substantial damage was caused to the Hertfordshire Oil Storage Terminal. At issue in this appeal, however, was whether Shell could claim damages against Total in respect of economic losses caused to it as beneficial owner of land and facilities at Buncefield. 

Regards,
Colin